A way of protecting your loved ones financially, if you die, by providing them with liquidity in your estate.
What is it?
Why do you want one?
If you die, the insurance company will pay out to help your nominated beneficiaries pay for things like:
- Settling a home loan, vehicle or credit card debt
- Funeral expenses
- Monthly living expenses
- Future education for your children
- Cost of closing the estate
This means you’re not taxed on the growth you earn and you get your full investment return.
Important to note
- Contributions to a TFSA are not tax deductible like a retirement fund.
- Annual contributions have been increased to R36 000 per year
- Lifetime limit remains at R500 000
- If you do not use your annual contribution of R36 000 in the tax year, you cannot carry it to the next year and the contribution will be forfeited
Do you need it?
Life cover isn’t for everyone. If you have dependents like a spouse or children, you will want to consider life cover. It’s also advisable if you have a home loan or debt that your estate would be liable for.
How much does it cost?
- Pre-existing conditions
- Smoking and drinking habits
Your financial planner should prepare several quotes from different providers and explain how the premiums increase over time.
How can we help you?
We can advise whether you need life cover and the best plan to suit your needs.